As 2025 winds down, the home furnishings retail industry continues to monitor significant developments around the IEEPA (International Emergency Economic Powers Act) tariffs. The Supreme Court heard oral arguments several weeks ago regarding the legality of the so-called reciprocal and “fentanyl” tariffs imposed under IEEPA authority. While no decision has been issued yet, legal observers suggest the Court may rule to invalidate these tariffs. However, outcomes remain uncertain, and even a favorable ruling may not immediately clarify the process or timing for duty refunds.
In light of these developments, home furnishings importers should take proactive steps to protect their financial interests and prepare for any forthcoming changes.
Key Steps for Importers:
- Identify Tariffed Entries
Begin by identifying all import entries on which IEEPA tariffs were paid. This information will be crucial if and when refund procedures are released. Even after the Court rules, guidance from U.S. Customs could take several weeks. - Register for a U.S. Customs ACE Portal Account
If you don’t already have one, sign up for a free ACE (Automated Commercial Environment) portal account. This platform is essential for tracking entries and processing refunds.- Apply here: ACE Portal Application
- Once approved, enroll in the ACH Refunds system to ensure any refunds are processed electronically—Customs no longer issues paper checks.
- Consider Legal Strategy
- Liquidation Extensions: Importers may request an extension of entry liquidation to keep entries open, but Customs has been inconsistent in granting these requests.
- Court Case Filings: Based on a Dec. 19 ruling from the U.S. Court of International Trade (Slip Op. 25-154), importers with pending court cases may still be eligible for refunds even on liquidated entries. While not definitive, this suggests importers may wish to consult legal counsel to determine whether filing a protective case could preserve refund rights.
Looking Ahead: Possible New Tariff Actions
If the Supreme Court overturns the IEEPA tariffs, the Trump Administration has indicated it will pursue alternative tariff actions. Existing tariff mechanisms, such as Section 301 and 232, are likely to be used to impose new duties on imports from China and other countries. Section 301 investigations focus on unfair trade practices – this authority was used during the first Trump Administration on imports from China. Section 232 investigations are related to national security concerns. The Trump Administration has initiated nearly a dozen Section 232 investigations, resulting in tariffs across several sectors, including upholstered furniture, kitchen cabinets, and bathroom vanities. Importantly, in the context of the legal challenge to the IEEPA tariffs, these mechanisms have stronger legal standing. However, they require an administrative process that can take 9 to 12 months.
As always, tariff policy remains fluid and politically charged. Retailers should remain informed and agile as we enter 2026.
HFA is closely tracking these legal and regulatory developments. We continue to advocate for fair and transparent trade practices that do not impose undue burdens on furniture retailers. Our priority is to ensure our members are equipped to navigate these challenges with clarity and confidence.
